While Australia’s eight capital cities continue to attract the majority of home buyers, a new wave of attention is shifting toward smaller cities with big lifestyle appeal and new residential developments in the pipeline.
From coastal enclaves and cultural ports to elevated country hubs and gourmet regions, these cities offer a compelling balance between lifestyle, affordability, and infrastructure – ideal for those seeking a middle ground between big-city bustle and rural quiet.
There is no formal nationwide definition of a city in Australia, as classifications vary by state and territory. However, population size (typically above 10,000) and available amenities tend to inform the label.
“Major” regional cities usually have more than 100,000 residents – like Newcastle, Geelong, or the Gold Coast. But for lifestyle seekers, smaller cities are where the opportunities often lie.
Here are six standout small cities around the country drawing interest with liveability, character, and property potential, according to realestate.com.au.
A long-time lifestyle favourite, Port Macquarie is nestled between the Hastings River and the Pacific Ocean on New South Wales’ Mid-North Coast. Known for its sunshine and relaxed energy, it attracts families, downsizers, and commuting professionals looking for a laid-back pace within reach of major hubs.
Leisure activities abound on and off the water, including surfing, kayaking, whale-watching, and bushwalks. The town is also celebrated as the unofficial koala capital of the east coast.
New residential opportunities include The Sanctuary, with land lots starting from $415,000, and Sovereign Hills, a large master-planned community offering various lot sizes.
Located in Victoria’s High Country, Wangaratta offers a scenic lifestyle with a strong cultural heartbeat. Just 2.5 hours from Melbourne, the city combines leafy riverside living with heritage charm and a growing food and wine scene.
Wangaratta’s annual jazz festival, arts precinct, and nearby Ned Kelly sites in Glenrowan draw both tourists and locals. Buyers have been securing lots at Warby Views estate, which features generous blocks ranging from 567 to 2000sqm near the Three Mile Creek corridor.
Queensland’s largest inland city, Toowoomba offers a vibrant urban centre with country character. Perched on the Great Dividing Range, it is home to hundreds of parks and the annual Carnival of Flowers, alongside a dynamic mix of dining, arts and retail.
Toowoomba is also a major logistics and employment hub, with thriving sectors in agriculture, health, education, and construction.
Affordability is a key draw, with a median house price of $600,000 and units at $415,000, according to realestate.com.au. Land lots ranging from 580sqm to over 1,000sqm are currently for sale at Botanic Highfields Road, around 20 minutes from the CBD.
Fremantle may be part of greater Perth, but this historic port city has its own vibrant identity. Framed by the Swan River and the Indian Ocean, “Freo” is rich in culture, food, music and maritime history.
It’s home to attractions like the Cappuccino Strip, Fishing Boat Harbour, and various festivals, making it a lifestyle magnet for creatives and professionals alike.
While new developments are limited in the established city (which has a median house price of $1.33 million), two boutique projects are underway. Apartments are selling at Muse at Artisan Place, and townhouses are available off-the-plan at Monument East.
The largest regional centre in the Adelaide Hills, Mount Barker delivers serene country living just 39km from Adelaide’s CBD. It’s surrounded by vineyards, farmers markets and walking trails, making it a haven for foodies and tree-changers.
Major master-planned communities are fuelling its residential growth. Springlake Communities offers blocks ranging from 500sqm to 4,400sqm, while Bluestone Mt Barker is an established estate with green spaces and diverse housing.
The Newenham development, just two kilometres from the city centre, features large premium lots and planned community amenities.
Tasmania’s northern capital, Launceston is a regional gem blending village charm with urban vitality. Home to around 70,000 residents, it boasts rivers, vineyards, art deco architecture, and the dramatic Cataract Gorge.
Designated a City of Gastronomy by UNESCO, “Launnie” is known for its food scene and wine country, making it a top pick for lifestyle buyers.
New blocks at Cedar Grove estate, just 7km from the CBD, are currently selling from $190,000 to $300,000, offering an accessible entry into one of the island state’s most desirable postcodes.
